State scales back tax quiz after complaints about bizarre questions

Buffeted by complaints about unusual questions that had to be answered before many Ohio taxpayers could get their state income tax refunds, the taxation department is scaling back the quiz.

Darrel Rowland, The Columbus Dispatch

Buffeted by complaints about unusual questions that had to be answered before many Ohio taxpayers could get their state income tax refunds, the taxation department is scaling back the quiz.

“We have looked at some of the parameters for some of the questions and those have been altered somewhat,” said Gary Gudmundson, spokesman for the Ohio Department of Taxation. “But it’s more of a nibbling around the edges.”

The agency also has re-examined its internal standards used to determine whether someone requesting a refund needs additional screening, which could reduce the number of Ohioans forced to take the quiz.

But state officials don't want to loosen the new screening setup too much, making it easy for identity thieves to wind up with Ohioans’ money.

“We want to make sure the questions are fair and still adequate to ensure the identity of the person taking the quiz,” Gudmundson said.

Tax Commissioner Joe Testa said in a release Friday that only 3 percent are flunking the quiz. Earlier department estimates put the percentage at 10.

Taxpayers who receive the letter steering them to the I.D. Confirmation Quiz can expect a refund in 15 days or less after passing the quiz; taxpayers who are not directed to take the quiz can expect a refund in about a week, Testa said.

Many taxpayers were taken aback when they were asked questions such as “What year did your son sell his car?” or “What was the purchase price of the home you bought 20 years ago?” or even about when they shared an address with another ex-wife of their ex-husband.

The state signed a $3.5 million contract with Lexis-Nexis Risk Management Solutions to set up the screens after increasing attempts to steal Ohio taxpayers’ refunds. Through the end of 2014, the state caught 61,275 attempted fraudulent tax filings seeking $267 million in tax refunds. Such fraud attempts typically had run only $8 million to $10 million per year.